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CC metals and Alloys, LLC reported that the company will suspend ferrosilicon production at its Calvert City plant in Kentucky. The suspension is effective July 1, 2015. According to a press release by the company, the production stoppage will last approximately three months. During this time, the company will utilize inventories that have accumulated as a result of weak market conditions and slower consumption downstream in the US steel industry.

 

Mordechai Korf, CEO of Georgian American Alloys, the parent company to CC Metals and Alloys, commented, "This is a difficult decision to make, and we share the disappointment of our employees, but we believe this is the only reasonable course of action at this time."

 

According to figures reported by CC Metals and Alloys, about 65% of its 109 employees will be affected with lay-offs during the idling. Customers of the company will not be affected by the stoppages. CC Metals and Alloys commented that its decision was due in part to a rise in imports during the first half of 2015.

 

Since late 2014, the US steel industry has continued to struggle. The capability utilization rate has fluctuated above or slightly below 70% since January. As a result, demand for ferrosilicon has waned greatly, and many believe that inventories have remained high during this period. Prices for US ferrosilicon were at 96.5C per lb in early January. As of last week, prices had dropped to 84.5C per lb on average.